Doing Business with Detroit Diesel Corporation A supplier’s guide to a successful relationship with Detroit Diesel Corporation ® December 2020 Table of Contents 1. Preface ........................................................................................................................................ 1 1.1 Welcome to Doing Business with Detroit Diesel Corporation .................................................. 1 2. Purchasing ....................................................................................................................................2 2.1 Purchase of Materials ................................................................................................................. 2 2.1.1 Production Parts ...................................................................................................................... 2 2.1.2 Production Spare Parts ............................................................................................................ 2 2.1.3 Service Only Parts .................................................................................................................... 2 2.2 Requests for Quote from DDC .................................................................................................... 2 2.3 Purchase Contracts ..................................................................................................................... 3 2.4 Other Contracts ........................................................................................................................... 3 2.4.1 MRO Purchase Orders .............................................................................................................. 4 2.5 Chart of Purchase Contracts and Purchase Orders .................................................................. 5 2.6 eDocs ........................................................................................................................................... 6 2.7 Financial Information .................................................................................................................. 7 2.8 Supplier Evaluation ..................................................................................................................... 7 2.9 Material Price Notation ............................................................................................................... 8 2.10 Cost Transparency .................................................................................................................... 8 3. Tooling ...........................................................................................................................................9 3.1 Tooling Tagging ........................................................................................................................... 9 3.2 Tooling Confirmation .................................................................................................................10 3.3 Tooling Relocation .....................................................................................................................11 3.4 Scrap Tooling .............................................................................................................................13 3.5 Shot Counter Tooling ................................................................................................................14 3.6 Tooling Storage .........................................................................................................................14 4. Quality Requirements .................................................................................................................. 15 4.1 Certifications Requirements .....................................................................................................15 December 2020 ii 4.2 Production Part Approval Process (PPAP) ...............................................................................15 4.2.1 PPAP Documentation (Engines, Axles, Transmissions, and Aftertreatment Systems) ......16 4.2.2 Initial Samples ........................................................................................................................16 4.2.3 Identification of Sample Submission for Production Approval ...........................................17 4.2.4 Sample Re-Evaluation ............................................................................................................18 4.2.5 Overdue PPAP Submissions ..................................................................................................18 4.2.6 Informing the supplier of quality defects subsequent to the successful evaluation of sample parts ....................................................................................................................................18 4.3 Rejected Material ......................................................................................................................19 4.3.1 Introduction ............................................................................................................................19 4.3.2 Defective Material Report (DMR) ...........................................................................................19 4.3.3 Return Goods Shipper (RGS) ..................................................................................................21 4.3.4 Inspection Report Reporting in eSEP++ (Engines, Axles & Transmissions) ........................21 4.3.5 Deviation Approval (DA) .........................................................................................................22 4.3.6 Q-HELP ....................................................................................................................................24 4.3.7 International Material Data System (IMDS) ..........................................................................25 5. Materials Management ............................................................................................................... 26 5.1 Electronic Data Interchange (EDI) ............................................................................................26 5.1.1 Traditional EDI ........................................................................................................................26 5.1.2 EDI 862 Shipping Schedule Transmission and Requirements .............................................28 5.1.2.1 EDI Service Bureau .............................................................................................................28 5.1.3 GXS TradeWeb Service (web-based EDI) ...............................................................................28 5.1.4 EDI 862 Shipping Schedule ...................................................................................................29 5.2 Detroit Diesel Redford Consolidation Center - CC ex-NAFTA ..................................................36 5.2.1 General Guidelines for Shipping Parts to CC ex-NAFTA .......................................................37 6. Packaging & Preservation – Production Parts Redford/Detroit Manufacturing & CC ex-NAFTA ...... 39 6.1 Introduction ...............................................................................................................................39 December 2020 iii 6.2 General Requirements ..............................................................................................................40 6.2.1 Hazardous Material ................................................................................................................42 6.2.2 Safety ......................................................................................................................................42 6.2.3 Import / Export ......................................................................................................................43 6.2.4 Packaging Approval Process .................................................................................................43 6.3 Choosing the Right Container ...................................................................................................44 6.4 Expendable Packaging ..............................................................................................................44 6.4.1 Proper Palletization and Trailer Loading ...............................................................................45 6.4.2 Small Lot Containerization ....................................................................................................46 6.4.3 Corrugated Pallet Boxes ........................................................................................................47 6.4.4 Internal Dunnage for Expendable Systems ..........................................................................47 6.4.5 Wooden Pallets ......................................................................................................................47 6.4.5.1 Deck Boards ........................................................................................................................48 6.4.5.2 Cross Ties ............................................................................................................................48 6.4.5.3 Footprints & Entry ...............................................................................................................48 6.4.6 Regulations on Wood Packaging ...........................................................................................48 6.4.6.1 Modular Packaging for Export via CC ex-NAFTA ...............................................................49